Can We Say “Double-Dip” in the Housing Market?

The latest numbers we are seeing in the National and Local real estate markets are pointing towards a double-dip recession. Locally, the number of properties that went under contract in May was down from last year. We are also seeing prices in neighborhoods that had stabilized start to drop again. We are seeing fewer active buyers in the market. That does not bode well for our summer selling season.

Nationally, the Case-Shiller Index shows prices falling again across the nation after an uptick earlier in the year. In addition, builders are not showing any confidence in the recovery (see the story below). Personally, I have seen close friends leave the Vail Valley for greener pastures, real estate brokers who were able to earn a living selling real estate turning to other professions, and too many clients losing their homes to foreclosure. This is a recovery?

June home builder index falls to nine-month low

By Steve Goldstein

WASHINGTON (MarketWatch) — The already-weak index of builder confidence for new single-family homes fell 3 points in June to 13, the lowest reading since Sept. 2010, according to the National Association of Home Builders/Wells Fargo Housing Market Index. Economists polled by MarketWatch had expected a 16 reading. “Builders are being squeezed by the continuing weakness in existing-home prices – against which they must compete — as well as rising material costs,” said NAHB Chairman Bob Nielsen, a home builder from Reno, Nev. The worst-ever reading was 8 in Jan. 2008, and the gauge hasn’t been above 50 since April 2006. The HMI is a seasonally adjusted index where any number over 50 indicates that more builders view sales conditions as good than poor.